The eight oil exporting countries of the OPEC+ Group have decided to have a support limitation run from Tuesday. That means: consumers can prepare for falling prices. However, this depends on various factors.
It has not been bad for consumers in recent months: the raw material, which is a decisive factor at the costs of driving or heating, has noticeable discounts.
The crude oil of the North Sea Brent, which is important for Europe, temporarily cost $ 82 (76 euros) per barrel (159 liters) in January and is now traded by approximately ten percent lower. And the prospects for further price returns are not bad.
Because the oil tap must be switched on from April. From April, the OPEC Plus members of Saudi Aarabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman want to increase their oil production somewhat. The reduction in daily production that will be determined by 2.2 million vessel in 2023 must be gradually reversed.
Prices fall on the petrol pump in the cent.
On the gas stations, the OPEC+decision to run the oil rick a little more should only have an impact. “If the financing is expanded, this is definitely a boost in the direction of cheaper oil prices,” said Christian Laberer, fuel market expert at the German traffic club ADAC.
However, the extensive expansion has the potential to print the oil price with a few dollars and the fuel price with a few cents. However, this can only be expected if the mineral oil companies pass on the price decrease on the world market to consumers at the gas stations. According to Laberer, the end of the heating season also plays a role: “Diesel control programs can currently hope that the end of the heating season will bring the typical relaxation for the price of its fuel.”
Effect on Russia
The income from the sale of crude oil plays an important role for Russia. Despite all the attempts from the West to limit the income of the oil company, Russian oil deliveries to India or China remain one of the most important financial sources for the Kremlin. As the Bloomberg Economic Service reports, the deliveries of crude oil from all Russian ports in March increased to 3.45 million barrels per day and have reached the highest value since October.
US President Donald Trump had made it clear that the oil prices had to be reduced to end the war in Ukraine. With a greater amount of financing of the OPEC+decision, the Russian income of the oil company could, however, increase as a whole. However, this is only possible if the price fall in the world market is limited due to the higher amount of financing.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
